Honey Boo BooFamily Calls BS on TLC UltimatumYou Breached Our Deal!

3/3/2015 4:00 PM PST

Honey Boo Boo﻿and the brood are laughing off TLC's legal threats ... because they say their contract was breached by the network -- and they have no obligation to fulfill their old deal.

Sources close to Mama June and co. tell us the family claims their health insurance hasn't been paid since November -- which was part of their contract -- so they no longer believe they should answer to TLC.

But our network sources claim the deal only required TLC to pay through 2014 -- which it says was covered in full. For extra generosity, the network claims it agreed to pay for the family's insurance this year too, up until May -- and we're told THAT is June's beef.